Final answer:
The conservatism principle in financial accounting, which promotes the early recognition of potential losses but delays the recognition of gains, is not well-suited for measuring taxable income that requires precise calculation for tax purposes.
Step-by-step explanation:
The financial accounting principle of conservatism is true in that it is not well suited to the task of measuring taxable income. The conservatism principle in accounting emphasizes recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but it delays the recognition of assets and revenues until they are realized. In contrast, tax accounting aims to precisely measure taxable income in order to calculate the amount of tax owed to the government. The different objectives of financial accounting and tax accounting can often lead to differences in how income and expenses are recorded and recognized.